Mbombela - Mpumalanga government departments and their employees have committed to immediately settle all their outstanding municipal accounts to improve cash flow at the province's 21 municipalities.
The pledge was made at the end of a three-day local government Indaba held at Mbombela stadium following revelations that the 21 municipalities were struggling to collect millions of rands in revenue owed to them by government.
"The commitment was one of the resolutions taken. We agreed that all departments, state-owned enterprises and government employees must pay all their outstanding municipal accounts immediately," said provincial Cooperative Governance and Traditional Affairs spokesman, Simphiwe Kunene.
Kunene said each of the 21 municipalities would also draft and implement a programme of debt management and revenue enhancement.
The average revenue collection for the three municipal districts in the province is as follows: Ehlanzeni, 42 percent, Nkangala, 47 percent and Gert Sibande, 61.57 percent.
Kunene said that within the next three months, all critical funded vacant positions would be filled with suitable and appropriately qualified individuals capable of collecting revenue for the municipalities.
When he presented his department's R325 million 2011/2012 budget, MEC Madala Masuku said that municipal billing systems would be prioritised this financial year.
He said 10 municipalities had prioritised their revenue enhancement plans.
"Our target is to increase the collection on bills to 70 percent in these municipalities. We must, as a collective, increase awareness on the culture of payment, including government institutions and departments," said Masuku.
Masuku said a decision was taken earlier this year by the provincial executive that no department should be in arrears for more than 90 days.
"We are engaging with the provincial treasury to develop intervention measures in case of non-compliance," Masuku said.
At the time, he said seven of the 21 municipalities of the province collectively owed Eskom approximately R77 million.
"We are aware that in most cases, this arises from failure to pay by the poor, who in most cases can be described as the working poor. We are pleased to note that Lekwa and Emalahleni local municipalities have honoured their obligations towards Eskom," said Masuku.
